Intel Corporation announces that Third-Quarter revenue for 2016 is expected to be above the company’s previous outlook.
Intel Corporation raises third-quarter revenue expectations to $15.6 billion, plus or minus $300 million, as compared to the previous range of $14.9 billion, plus or minus $500 million.
The increase in revenue is primarily driven by replenishment of PC supply chain inventory. The company is also seeing some signs of improving PC demand.
Intel is forecasting the mid-point of the third quarter GAAP gross margin range at 62 percent, plus or minus a couple of points, up 2 points versus the prior third-quarter GAAP outlook gross margin midpoint of 60 percent, driven mostly by higher PC unit volume.
The midpoint of non-GAAP gross margin range is now forecasted at 63 percent, plus or minus a couple of points, up 1 point versus the prior period non-GAAP outlook gross margin midpoint of 62 percent.
R&D plus MG&A spending is expected to be approximately $5.2 billion, $100 million higher than the prior expectation of approximately $5.1 billion.
Gains and losses from equity investments and interest and other income are expected to be a net loss of approximately $125 million, as compared to the prior expectation of a net loss of approximately $75 million.
The tax rate for the period is expected to be 22 percent, as compared to the prior expectation of 21 percent.